With its shares trading around 40p, Arecor Therapeutics PLC (AIM:AREC) looks seriously overlooked.
Panmure Liberum values the business at 245p a share, citing underappreciated potential in its proprietary insulin platform and the broader peptide delivery opportunity.
At the heart of this re-rating case is AT278, a novel insulin formulation that could open up the lucrative type 2 diabetes pump market.
AT278 is the only ultra-concentrated, ultra-rapid insulin in clinical development. That means it delivers insulin faster and in smaller volumes, making it ideal for next-generation mini pumps and extended wear devices.
For patients who need high insulin doses, especially those with type 2 diabetes and a higher body mass index, this could be a game changer. Arecor’s market estimate for the US alone stands at $2.9 billion.
The company is currently in talks with pump manufacturers on a strategic partnership to fund a pivotal phase 2 trial. If successful, the deal could fast-track commercialisation and ease immediate funding concerns. Cash runway extends into the first half of 2026, but a partner would boost visibility and credibility.
Beyond insulin, Arecor is applying its Arestat technology to the oral delivery of peptides, including GLP-1s. These are blockbuster drugs used in weight loss and diabetes, yet most are injectable.
Arecor’s approach could enhance bioavailability and improve patient adherence, tapping into a market expected to surpass $100 billion by 2030.
Add to that a pipeline of partnered assets like AT220, which is starting to generate royalties, and there is a growing foundation for value.
Panmure notes that, in common with many small-cap life sciences companies, Arecor is operating on a fairly short cash runway.
"This could potentially be addressed by a strategic partnership, currently in negotiation," it adds.
In short, Arecor may be small and cash-constrained, but its technology could support a big leap forward in how metabolic diseases are treated. The upside case is clear.